Standard deviation is a metric that shows the variability of a security’s returns over time. It can be used to gauge volatility based on past performance and compare a future return to past returns.

Caroline Banton has 6+ years of experience as a writer of business and finance articles. She also writes biographies for Story Terrace. Chip Stapleton is a Series 7 and Series 66 license holder, CFA ...

This article was originally published on Built In by Eric Kleppen. Variance is a powerful statistic used in data analysis and machine learning. It is one of the four main measures of variability along ...

In response to my article, Is the Stock Market Too Concentrated?, which relied upon standard-deviation calculations to assess investment risk, a reader wrote: “My problem [with your argument] is ...